I am a serial entrepreneur having founded companies in multiple areas -- from consumer products, to services, to internet websites and technologies. Since 1999, I have run Growthink, a consulting and information products firm that has helped over 500,000 entrepreneurs and business owners to start, grow and sell their businesses. We focus on business planning, capital raising and methodical and sustained growth. My book, “Start At The End: How Companies Can Grow Bigger And Faster By Reversing Their Business Plan” has been read by thousands of owners of both small and large businesses. Many of them have implemented the strategies in the book and have dramatically grown their companies. I live in New York with my wife and two kids. When I’m not working with entrepreneurs and business owners, I try to spend my time outdoors with my family, doing activities like trail running, skiing, or going to the beach.

Split Testing: 5 Keys to Success

Most companies will split test, find a winner (the version that won the split test) and be satisfied. Conversely, successful companies continue to split test; they never stop and they’re never satisfied with their current results.

The fact is that there is always something new you can try and thus split test. In my business plan company Growthink, we have had at least one split test running every day for the past 3+ years.

3. Test variables that really matter

While there are numerous things you can split test, focus on testing the variables that can make a significant difference.

For example, the background color on your website, can and will make a difference, but probably a very small one.

Conversely, your choice of headlines, your page layout, and the offer you make on your website’s pages can make a huge difference.

Always start by testing the variables that can really affect your results.

4. Track the right information

When running a split test, make sure to track to right metrics.

For instance, do you care what percentage of people buy right away, or what percentage call you, or what percentage complete an online form?

And if you care about people buying, is the number of people buying more important than the average price per sale?

Make sure you understand precisely what you will track before you start the split test. Consider this scenario: one version of a web page yields 70 buyers at an average sales price of $15. The result is $1,050 in sales. The other version yields 90 buyers at an average sales price of $11. The result is only $990 in sales. While the first version yielded more immediate revenue, the second version resulted in 20 more buyers, and if your lifetime customer value is significant, this result may be better for your company.

So be sure to understand and track to right metrics.

5. Track both short-term and long term results

When running a split test, you clearly look at the short-term results. That is, you look at the performance of both the “control” and new version of the page on a daily or weekly basis until you determine which page has won.

However, even when a page wins, it doesn’t mean that it will continue to perform well over time. As such, not only should you continue to split test (#2 above), but you should track the results of EACH of your key web pages over time.

For example, let’s say in your split test, you found that in your winning version 4.7% of visitors purchased your product. The key point to understand is that this percentage will not stay constant. Rather, it will vary over time. And, nearly always, the results will deteriorate over time. Meaning that while next month, the percentage may be around 4.7% again, the following month, or in the months thereafter, it will probably decrease if you don’t modify the page.

So, importantly, make sure to track the results of your pages daily, weekly and/or monthly so you know if and when your pages deteriorate (in which case, you know when you need to conduct your next split test to improve them). Mapping these conversions over time is a key aspect of the Guiding Metrics dashboard.

When used properly, split testing is a powerful marketing tactic that can quickly boost your sales and profits. So start using it today!

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